Non-banking finance company Religare Finvest plans to raise up to Rs 800 crore from retail investors through issue of bonds early next month.
“We will raise Rs 800 crore through issue of retail bonds. This includes an option to retain another Rs 400 crore over subscription,” chief executive Kavi Arora told PTI.
The funds raised through this issue, after meeting the expenditure, will be used for various financing activities, including lending and investments, he said. Arora said the bonds would have a flexible maturity period of three years and five years.
“We have filed for a retail bond issue with the Bombay Stock Exchange last week. We are hopeful of launching the issue in two weeks,” he added.
Religare Finvest had an asset base of Rs 9,900 crore at the end of June with a majority of it coming from secured loans, comprising mortgage lending and commercial vehicles and construction equipment.
Arora said Religare Finvest would now focus on extending loans to small and medium enterprises (SMEs), in the form of working capital.
“The SME sector presents a significant opportunity for growth. With the economic expansion, the sector’s output will also increase,” he added.
Religare Finvest, a wholly-owned subsidiary of Religare Enterprises, is registered with the Rerserve Bank of India as an NBFC and has presence in 48 cities through 39 branches. It currently provides consumer finance, initial public offer financing and personal financial services.
